Monday, May 02, 2011
Changes to Healthcare Cost Reporting Requirements
by NOARK Webmaster
Employers will be responsible for reporting to employees the total cost of their group health benefit plan coverage on their W-2 forms under the Patient Protection and Affordable Care Act. The reporting requirements are expected to apply to the 2012 W-2 forms which is information employers must report to employees in January 2013.
This requirement is informational only and does not mean that employer-provided coverage will become taxable. Employers filing fewer than 250 W-2 forms in 2011 will not be required to report the cost of coverage on any forms furnished to employees before January 2014.
Some benefits are not subject to the W-2 requirement:
- HIPAA "excepted benefits" plans (accident, disability income, supplemental liability, workers' compensation insurance).
- Stand-alone dental and vision plans.
- Coverage under an HRA, amounts contributed to an HSA or an Archer MSA, as well as salary reduction contributions to a health FSA.
- Coverage under a self-funded plan that is not subject to any federal continuation requirements (COBRA, PHSA continuation, FEHBP continuation), such as a group health benefit plan sponsored by a church. Coverage provided by the federal government, state government or agency of the government under a plan maintained primarily for members of the military and their families.
- Coverage for a specific disease or illness or hospital indemnity insurance.